Would you like to have adequate, tailored personal insurances to protect your assets, clear your liabilities and protect your future lifestyle?
Tailored Personal Insurance
At Orange Financial Planning, we will explain the different types of insurances you may require and how to structure
them to obtain the most benefits, features and costs available.
As we say, “You do not need to cover yourself to have the same payout as winning the lottery, but you need enough
to cover your current debts and future lifestyle”.
Make an appointment today to have your situation reviewed.
Personal Protection Needs
Hold Inside Super
A life insurance policy pays a lump sum amount in the event of the insured’s death to a beneficiary, third party or an estate. This amount can then be used for things such as children’s education, debts and funeral expenses as well as ongoing income for the beneficiary.
Term Life Insurance may also be affected within a superannuation structure.
Hold Outside Super
Trauma insurance provides a lump sum payment in the event that you are diagnosed with one of a number of specified medical events. These may include such events as malignant cancer, heart attack, stroke, blindness etc. It can be taken out as a standalone policy or in conjunction with a Term Life Insurance or TPD policy. Generally, Trauma cover is not available through superannuation.
Total and Permanent Disability Insurance
Hold Outside/Inside Super
Total and Permanent Disability (TPD) provides a lump sum payment in the event of total disablement. TPD Insurance may be acquired inside or outside of a superannuation structure. It may be purchased as a standalone policy or in conjunction with a Term Life Insurance or Trauma Insurance policy. Policy holders may be able to choose an ‘any occupation’ or ‘own occupation’ definition.
To meet this definition, you must be unable to work in your usual occupation or any other occupation for which you are reasonably suited as a result of your education, experience or training.
To meet this definition, you must be unable to work in your own occupation.
Income Protection Insurance
Hold Outside/Inside Super
Income protection covers up to 75% of an insured’s income (net of business expenses) and provides a monthly benefit (up to age 70) if the insured is unable to work as a result of an illness or accident. You may also be able to include an additional benefit to cover superannuation contributions. The premiums when paid are tax deductive. The benefits when paid are taxable.
The policy will continue to be renewed (as long as premiums are continued to be paid) under the same terms and conditions regardless of any changes in health, occupation or pastimes.
To ensure that the value of benefits keep up with the cost of living, benefit amounts will be automatically increased each year on the annual review date in line with increases in the CPI (often limited to 3% per year).
Partial Disability benefits
A partial disability benefit may be payable until the expiration of the benefit period, where you are able to return to work to perform all the duties of your occupation but only at a reduced capacity, earning an income less that your pre-disability income.
If some of your insurances are held and paid within your superfund, it is important to consider which nomination would benefit you most in the event of a claim.
• Beneficiary nominations
• Binding (non-lapsing) nomination
• Binding nomination
There are also different structures of insurances to consider.
• Levels of cover
• Structure of Cover – Super vs. Non-Super
• Structure of Cover – Link benefit or Stand Alone
• Structure of premium – Stepped vs Level
Get In Touch
Contact Orange Financial Planning today to see how we can help create the life you planned for.